In a complex fiscal evaluation, the Court has to apply the doctrine of restraint

Supreme Court: Stating that in a complex fiscal evaluation the Court has to apply the doctrine of restraint, the Court held that the courts cannot really enter into the said realm in exercise of power of judicial review as several aspects, clauses, contingencies, etc. have to be factored and these calculations are best left to experts and those who have knowledge and skills in the field.

In the present case, before finalization of the financial bid submitted series of representations and seeing the silence of the owner it knocked at the doors of the Madras High court which directed for consideration of the representations. Stating that the High Court at that stage should have exercised caution, the Court said that if the courts would exercise power of judicial review in such a manner it is most likely to cause confusion and also bring jeopardy in public interest. An aggrieved party can approach the Court at the appropriate stage, not when the bids are being considered. Once the price bid was opened, a bidder could not have submitted representations on his own and seek a mandamus from the Court to take certain aspects into consideration. It is appreciable the owner in certain kind of tenders call the bidders for negotiations to show fairness transparently.

The Court also noticed that the issue pertaining to correctness of Consultant’s report has to be adjudged and scrutinized within the scope of limited power of judicial review in the obtaining factual score and in the present case the Consultant had analysed the offers regard being had to the tender conditions. Be it ingeminated that the analysis and determination made by the financial consultant has been carried out before receipt of any additional document from either side. The documents were called for by the owner from both the qualifying bidders in a transparent manner and the same have been considered at the time of evaluation by the Consultant.

The Bench of Dipak Misra and Shiva Kirti Singh, JJ held that Courts cannot sit in appeal over the financial consultant’s assessment. The financial computation involved, the capacity and efficiency of the bidder and the perception of feasibility of completion of the project have to be left to the wisdom of the financial experts and consultants. [Tamil Nadu Generation and Distribution Corporation Ltd. v. CSEPDI – Trishe Consortium, 2016 SCC OnLine SC 1150, decided on 18.10.2016]

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